case study on child labour

• IKEA Case: One Company’s Fight to End Child Labor
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IKEA Case: One Company’s Fight to End Child Labor

A business ethics case study.

In this business ethics case study, Swedish multinational company IKEA faced accusations relating to child labor abuses in the rug industry in Pakistan which posed a serious challenge for the company and its supply chain management goals.

Empty garage with a highlighted walking path in front of an IKEA.

Photo credit: mastrminda/Pixabay

Yuvraj Rao '23 , a 2022-23 Hackworth Fellow at the Markkula Center for Applied Ethics graduated with a marketing major and entrepreneurship minor from Santa Clara University.

Introduction

IKEA is a Swedish multinational company that was founded in 1943 by Ingvar Kamprad. [1] The company mainly provides simple, affordable home furniture and furnishings, and it pioneered DIY, or do it yourself, furniture. Kamprad originally sold binders, fountain pens, and cigarette lighters, but eventually expanded to furniture in 1948. According to the Journal of International Management, in 1953, Kamprad offered products that came as “a self assembled furniture” for the lowest price, which ultimately became a key part of IKEA’s value proposition going forward. In 1961, IKEA started to contact furniture factories in Poland to order chairs from a factory in Radomsko. [2] Outsourcing to Poland was mainly due to other Swedish furniture stores pressuring Swedish manufacturers to stop selling to IKEA. In the mid 1960’s, IKEA continued its supplier expansion into Norway, largely because IKEA didn’t want to “own their own line of production,” [3] and Germany due to its ideal location (downtown, suburban area) to place an IKEA store. Given IKEA’s suppliers were now not just in Sweden, it led to an increased importance on developing strong relationships with its suppliers.

In the following decades, IKEA continued its expansion and solidified its identity as a major retail outlet with parts being manufactured around the world. By the mid 90’s, IKEA was the “world’s largest specialized furniture retailer with their GDP reaching $4.5 billion in August of 1994.” [4] It also worked with 2,300 suppliers in 70 different countries, who supplied 11,200 products and had 24 “trading offices in nineteen countries that monitored production, tested product ideas, negotiated products, and checked quality.” [5] IKEA’s dependence on its suppliers ultimately led to problems in the mid 1990’s. At this time, IKEA was the largest furniture retailer in the world, and had nearly “100 stores in 17 countries.” [6] Also during this time, a Swedish documentary was released that highlighted the use of child labor in the rug industry in Pakistan, which impacted IKEA given it had production there. The rug industry in particular is extremely labor intensive and is one of the largest “export earners for India, Pakistan, Nepal and Morocco.” Here, children are forced to work long hours for very little pay (if there is any pay at all). In some cases, their wages are only enough to pay for food and lodging. In cases where children are not paid, the wages are used by the loom owner to pay the parents and agents who brought the children to the factories. Additionally, the work the children must do comes with a lot of risk. More specifically, children face risks of diminishing eyesight and damaged lungs from “the dust and fluff from the wool used in the carpets.” [7] As a result of these working conditions, many of these children are very sick when they grow up. Despite these terrible conditions, it isn’t that simple for families not to send children to work at these factories. A lot of the parents can’t afford food, water, education, or healthcare, so they are often left with no choice but to send their children to work for an additional source of income. [8]

 IKEA and Child Labor Accusations

The accusations of child labor in the rug industry in Pakistan posed a serious challenge for IKEA and its supply chain management goals. It would need to address the serious issues of alleged injustice for the sake of its reputation and brand image. Additionally, as IKEA also had suppliers in India, it would need to be in compliance with India’s “landmark legislation act against child labor, the Child Labor (Prohibition and Regulation) Act of 1986.” [9]

As a result of these accusations, IKEA ultimately ended its contracts with Pakistani rug manufacturers, but the problem of child labor in its supply chain still persisted in other countries that were supplying IKEA. Marianne Barner, the business area manager for rugs for IKEA at the time, stated that the film was a “real eye-opener…I myself had spent a couple of months in India for some supply chain training, but child labor was never mentioned.” [10] She also added that a key issue was that IKEA’s “buyers met suppliers at offices in the cities and rarely visited the actual production sites.” [11] The lack of visits to the actual production sites made it difficult for IKEA to identify the issue of child labor in these countries.

To make matters worse, in 1995, a German film “showed pictures of children working at an Indian rug supplier... ‘There was no doubt that they were rugs for IKEA,’ says business area manager for textiles at the time, Göran Ydstrand.” [12] In response to these accusations, Barner and her team went to talk to suppliers in Nepal, Bangladesh, and India. They also conducted surprise raids on rug factories and confirmed that there was child labor in these factories. The issue of child labor, along with the accusations of having formaldehyde (a harmful chemical) in IKEA’s best selling BILLY bookcases and the discovery of unsafe working conditions for adults (such as dipping hands in petrol without gloves), led to increased costs and a significantly damaged reputation for the company.

It was later discovered that the German film released in 1995 was fake, and the renowned German journalist who was responsible for this film was involved in “several fake reports about different subjects and companies.” [13] IKEA was now left with three options. First, some members of IKEA management wanted to permanently shut down production of their rugs in South Asia. Another option was to do nothing and proceed with its existing practices now that it was announced that the film was fake. The third option was that the company could attempt to tackle the issue of child labor that was clearly evident in its supply chain, regardless of whether the film was fake or not. IKEA ultimately decided to opt for the third option, and its recent discoveries would eventually help guide the policies the company implemented to address these issues, particularly child labor in India.

Steps Taken to Address Child Labor in the Supply Chain

IKEA took multiple steps to deal with its damaged reputation and issues of child labor in its supply chain. One way in which it did this was through institutional partnerships. One such partnership was with Save the Children, which began in 1994. According to Save the Children’s website, one of the main goals of their partnership is to realize children's “rights to a healthy and secure childhood, which includes a quality education. By listening to and learning from children, we develop long-term projects that empower communities to create a better everyday life for children.” [14] Furthermore, the partnership is intended to “drive sustainable business operations across the entire value chain.” [15] Together, IKEA and Save the Children are focused on addressing the main causes of child labor in India’s cotton-growing areas. [16] Save the Children also advised IKEA to bring in an independent consultant to ensure that suppliers were in compliance with their agreements, which further improved IKEA’s practices in its supply chain. IKEA also partnered with UNICEF to combat child labor in its supply chain. According to the IKEA Foundation, in 2014, IKEA provided UNICEF with six new grants totaling €24.9 million with a focus “on reaching the most marginalized and disadvantaged children living in poor communities and in strengthening UNICEF’s response in emergency and conflict situations.” Additionally, five of the six grants were given to help programs in “Afghanistan, China, India, Pakistan, and Rwanda,” with a “focus on early childhood development, child protection, education, and helping adolescents to improve their lives and strengthen their communities.” [17]

Next, IKEA and Save the Children worked together to develop IWAY, which was launched in 2000. [18] IWAY is the IKEA code of conduct for suppliers. According to the IKEA website, “IWAY is the IKEA way of responsibly sourcing products, services, materials and components. It sets clear expectations and ways of working for environmental, social and working conditions, as well as animal welfare, and is mandatory for all suppliers and service providers that work with IKEA.” [19] In addition, IWAY is meant to have an impact in the following four areas: “promoting positive impacts on the environment,” “securing decent and meaningful work for workers,” “respecting children’s rights”, and “improving the welfare of animals in the IKEA value chain.” [20] IWAY is used as a foundation to collaborate with IKEA’s suppliers and sub-contractors to ensure supply chain transparency.

As mentioned previously, one of the main goals of IKEA’s partnership with Save the Children was to address child labor in India’s cotton-growing areas. To do this, IKEA and Save the Children developed a program that would ultimately help more than 1,800 villages between 2009 and 2014. More specifically, the program moved nearly 150,000 children out of child labor and into classrooms. Also, as a result of this program, more than 10,000 migrant children “moved back into their home communities.” [21] Last but not least, the program trained almost 2,000 teachers and 1,866 Anganwadi workers (whose duties include teaching students and educating villagers on healthcare [22] ) in order to provide each village with a community leader. This was to ensure that the community had a skilled leader to assist in educating the villagers. In 2012, the IKEA Foundation and Save the Children announced that they would expand with new programs in Punjab, Haryana, and Rajasthan. This joint program illustrates IKEA’s commitment to improving communities in addition to helping children go to school.

Conclusion & Looking Ahead

IKEA has taken numerous steps to ensure that suppliers abide by the IWAY Code of Conduct. Companies around the world can learn from the policies IKEA has put in place to ensure that each company has control and complete oversight over their supply chains, which can lead to a more transparent and ethical supply chain. According to The IKEA WAY on Purchasing Products, Materials and Services, one way in which IKEA does this is by requiring all suppliers to share the content of the code to all co-workers and sub-suppliers, thus leading to more accountability among the company's suppliers. IKEA also believes in the importance of long term relationships with its suppliers. Therefore, if for some reason, a supplier is not meeting the standards set forth by the code, IKEA will continue to work with the supplier if the supplier shows a willingness to improve its practices with actionable steps to complete before a specified period of time. [23]

Additionally, during the IWAY implementation process, IKEA monitors its suppliers and service providers. To do this, IKEA has a team of auditors who conduct audits (both announced and unannounced) at supplier facilities. The auditors are also in charge of following up on action plans if suppliers are failing to meet the agreed upon standards specified by IWAY. Along with this, “IKEA…has the Compliance and Monitoring Group, an internal independent group that is responsible for independent verification of implementation and compliance activities related to IWAY and Sustainability.” [24] IKEA also has independent third party teams who conduct inspections on behalf of IKEA. [25] By conducting audits and putting together teams to ensure cooperation from suppliers throughout the supply chain, companies can be better equipped to prevent unethical practices in the production of goods and services. In Ximeng Han’s Analysis and Reflection of IKEA’s Supply Chain Management, Han highlights IWAY’s importance in maintaining links with IKEA’s suppliers. [26] Therefore, IWAY plays a crucial role in ensuring supply chain transparency and in building a more ethical and sustainable supply chain.

In addition to all of the policies IKEA has put in place to address issues in its supply chain, the company has also donated a lot of money to combat child labor in India. More specifically, according to an IKEA Foundation article written in 2013, “Since 2000, the IKEA Foundation has committed €60 million to help fight child labour in India and Pakistan, aiming to prevent children from working in the cotton, metalware and carpet industries.” [27] Furthermore, in 2009, the company announced that it would donate $48 million to UNICEF to “help poor children in India.” [28]

IKEA’s goal to completely eliminate child labor from its supply chain is an ongoing battle, and it is still committed to ensuring that this is ultimately the case. More specifically, it is extremely difficult to completely eliminate child labor from a company’s supply chain because of the various aspects involved. According to a report published in 2018 by the International Labour Organization, these aspects include a legal commitment, building and “extending” social protection systems (including helping people find jobs), “expanding access to free, quality public education,” addressing supply chain issues, and providing more protection for children in general. [29] Furthermore, Han points out the potential downsides that could arise as a result of having a global supply chain like IKEA does. Given IKEA is an international retailer, the company “has to spend a lot of time, money and manpower to enter new markets due to the different cultures, laws and competitive markets in different regions, and there is also a significant risk of zero return.” [30] Han also argues that the COVID-19 pandemic showed IKEA’s and many other companies’ inability to respond to “fluctuations in supply and demand,” primarily due to inflexible supply chains. [31] This information points out the various aspects that need to align in order to completely end the issue of child labor throughout the world, as well as the difficulties of having a global supply chain, which is why child labor is so difficult to completely eliminate.

Specific to IKEA’s actions, in 2021, IKEA announced three key focus areas for its action pledge: “Further integrating children’s rights into the existing IKEA due diligence system (by reviewing IWAY from a child rights’ perspective in order to strengthen the code),” “accelerating the work to promote decent work for young workers,” and partnering “up to increase and scale efforts.” [32] IKEA’s fight to end child labor in India highlights the importance of supply chain transparency and putting policies in place that ensures cooperation from suppliers and all parties involved. Additionally, in a Forbes article written in 2021, “According to the data from the OpenText survey…When asked whether purchasing ethically sourced and/or produced products matters, 81 percent of respondents said yes.” [33] Steve Banker, who covers logistics and supply chain management, also adds, “What is interesting is that nearly 20 percent of these survey respondents said that it has only mattered to them within the last year, which indicates that the Covid pandemic, and some of the product shortages we have faced, has made consumers re-evaluate their stance on ethical sourcing.” [34] These results confirm that customers are now considering how a product was sourced in their purchasing decisions, which makes it even more important for IKEA to be transparent about its efforts to eliminate child labor from its supply chain. Furthermore, the company’s open commitment to eliminating child labor and helping communities in India is beneficial in maintaining a positive relationship with its stakeholders.

The increase in globalization has made it even more essential for companies to monitor their supply chains and have complete oversight over business practices. IKEA is one of the companies leading the way in building a more ethical and sustainable supply chain, but more companies need to follow suit and implement policies similar to IWAY that holds all parties in the supply chain accountable for their actions. Through supply chain transparency and accountability, companies will likely be better equipped to handle issues that arise throughout their respective supply chains. Furthermore, by implementing new policies, conducting audits, and maintaining close communication with suppliers, companies can work to eliminate child labor in their supply chains and put children where they belong: in school.

Reflection Questions:

• What does this case teach you about supply chain ethics?
• What are some of the ways in which management/leaders can ensure compliance of the standards set forth by a company in terms of supplier behavior and ethical sourcing?
• Who is primarily responsible for ensuring ethical behavior throughout the supply chain? Is it the company? The suppliers? Both?
• How can companies utilize the various platforms and technologies that exist today to better understand and oversee their supply chains? 
• IKEA has taken numerous steps to address child labor in its supply chain. Do you think every business working in a context that may involve child labor has a duty to act in a similar way? Why or why not?

Works Cited 

“ About Ikea – Our Heritage .” IKEA.

“ Anganwadi Workers .” Journals Of India , 16 June 2020. 

Banker, Steve. “ Do Consumers Care about Ethical Sourcing? ” Forbes , 9 Nov. 2022.

Bharadwaj , Prashant, et al. Perverse Consequences of Well-Intentioned Regulation ... - World Bank Group .

“ Child Labor in the Carpet Industry Rugmark: Carpets: Rugs: Pakistan .” Child Labor in the Carpet Industry RugMark |Carpets | Rugs | Pakistan .

“ Creating a Sustainable IKEA Value Chain with Iway. ” Sustainability Is Key in Our Supplier Code of Conduct .

“ Ending Child Labour by 2025 - International Labour Organization .” International Labour Organization .

“ Film on Child Labour Is Eye-Opener for IKEA .” IKEA Museum , 31 Mar. 2022.

Foundation , ECLT. “ Why Does Child Labour Happen? Here Are Some of the Root Causes. ” ECLT Foundation , 17 May 2023.

Han, Ximeng. “ Analysis and Reflection of IKEA’s Supply Chain Management. ” Analysis and Reflection of IKEA’s Supply Chain Management | Atlantis Press , 27 Dec. 2022.

“ Human Rights and Global Sourcing: IKEA in India. ” Journal of International Management , 13 May 2011.

“ IKEA and IKEA Foundation .” Save the Children International .

“ IKEA Foundation Contributes €24.9 Million to UNICEF to Help Advance Children’s Rights. ” IKEA Foundation , 26 May 2020.

“ IKEA Foundation Helps Fight the Roots Causes of Child Labour in Pakistan .” IKEA Foundation , 18 Feb. 2013.

“ Ikea Gives $48 Million to Fight India Child Labor .” NBC News , 23 Feb. 2009.

“ IKEA Supports 2021 as the UN International Year for the Elimination of Child Labour. ” About IKEA.

The Ikea Way on Purchasing Products , Materials and Services .

Jasińska, Joanna, et al. “ Flat-Pack Success: IKEA Turns to Poland for Its Furniture. ” – The First News .

Thomas , Susan. “ IKEA Foundation Tackles Child Labor in India’s Cotton Communities .” Boston College Center for Corporate Citizenship , 15 July 2014.

[1] “About Ikea – Our Heritage.” IKEA .

[2] Jasińska, Joanna, et al. “Flat-Pack Success: IKEA Turns to Poland for Its Furniture.” – The First News .

[3] “Human Rights and Global Sourcing: IKEA in India.” Journal of International Management , 13 May 2011.

[4] “Human Rights and Global Sourcing: IKEA in India.” Journal of International Management , 13 May 2011.

[5] “Human Rights and Global Sourcing: IKEA in India.” Journal of International Management , 13 May 2011.

[6] “Film on Child Labour Is Eye-Opener for IKEA.” IKEA Museum , 31 Mar. 2022.

[7] “Child Labor in the Carpet Industry Rugmark: Carpets: Rugs: Pakistan.” Child Labor in the Carpet Industry RugMark |Carpets | Rugs | Pakistan .

[8] Foundation , ECLT. “Why Does Child Labour Happen? Here Are Some of the Root Causes.” ECLT Foundation , 17 May 2023.

[9] Bharadwaj , Prashant, et al. Perverse Consequences of Well-Intentioned Regulation ... - World Bank Group .

[10] “Film on Child Labour Is Eye-Opener for IKEA.” IKEA Museum , 31 Mar. 2022.

[11] “Film on Child Labour Is Eye-Opener for IKEA.” IKEA Museum , 31 Mar. 2022.

[12] “Film on Child Labour Is Eye-Opener for IKEA.” IKEA Museum , 31 Mar. 2022.

[13] “Film on Child Labour Is Eye-Opener for IKEA.” IKEA Museum , 31 Mar. 2022.

[14] “IKEA and IKEA Foundation.” Save the Children International .

[15] “IKEA and IKEA Foundation.” Save the Children International .

[16] “IKEA and IKEA Foundation.” Save the Children International .

[17] “IKEA Foundation Contributes €24.9 Million to UNICEF to Help Advance Children’s Rights.” IKEA Foundation , 26 May 2020.

[18] “IKEA and IKEA Foundation.” Save the Children International .

[19] “Creating a Sustainable IKEA Value Chain with Iway.” Sustainability Is Key in Our Supplier Code of Conduct .

[20] “Creating a Sustainable IKEA Value Chain with Iway.” Sustainability Is Key in Our Supplier Code of Conduct .

[21] Thomas, Susan. “IKEA Foundation Tackles Child Labor in India’s Cotton Communities.” Boston College Center for Corporate Citizenship , 15 July 2014.

[22] “Anganwadi Workers.” Journals Of India , 16 June 2020.

[23] The Ikea Way on Purchasing Products, Materials and Services .

[24] The Ikea Way on Purchasing Products, Materials and Services .

[25] The Ikea Way on Purchasing Products, Materials and Services .

[26] Han, Ximeng. “Analysis and Reflection of IKEA’s Supply Chain Management.” Analysis and Reflection of IKEA’s Supply Chain Management | Atlantis Press , 27 Dec. 2022.

[27] “IKEA Foundation Helps Fight the Roots Causes of Child Labour in Pakistan.” IKEA Foundation , 18 Feb. 2013.

[28] “Ikea Gives $48 Million to Fight India Child Labor.” NBC News , 23 Feb. 2009.

[29] “Ending Child Labour by 2025 - International Labour Organization.” International Labour Organization .

[30] Han, Ximeng. “Analysis and Reflection of IKEA’s Supply Chain Management.” Analysis and Reflection of IKEA’s Supply Chain Management | Atlantis Press , 27 Dec. 2022.

[31] Han, Ximeng. “Analysis and Reflection of IKEA’s Supply Chain Management.” Analysis and Reflection of IKEA’s Supply Chain Management | Atlantis Press , 27 Dec. 2022.

[32] “IKEA Supports 2021 as the UN International Year for the Elimination of Child Labour.” About IKEA .

[33] Banker, Steve. “Do Consumers Care about Ethical Sourcing?” Forbes , 9 Nov. 2022.

[34] Banker, Steve. “Do Consumers Care about Ethical Sourcing?” Forbes , 9 Nov. 2022.

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Case Studies

This section includes examples of company actions to address child labour in their operations and supply chains.

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Child Labour Case Study | Child-Centred Multi-Risk Assessments and Child Labour

In disaster, conflict and other crisis situations children are often exposed to new risks or exacerbated threats, such as physical violence, family separation and child labour. While child protection actors place a strong focus on understanding and mitigating the numerous child protection risks, they often lack a solid assessment and analysis of hazards and vulnerabilities related to climate, disaster and conflict, that impact on a child’s protection situation.

The Child-Centred Multi-Risk Assessment Guide was developed in by Plan International as a tool to assess the multiple risks in a child’s environment. This new assessment framework integrates multiple perspectives of risk, particularly disaster, conflict and child protection risks. Child labour is often intimately connected with both disaster, conflict and protection risks. These assessment tools enable children and young people to identify child labour and other risks and solutions before, during and after emergencies, including during preparedness or situation monitoring.

Child Labour In India: A Story Of Three Kids Who Became Adults Too Soon

Curated By : Ayushi Gupta

Last Updated: September 23, 2021, 10:32 IST

a son of a vegetable seller, Ankit Gupta has topped commerce stream in the whole of Bihar (Representative image)

A survey done by International Labor Organization (ILO) reveals that over 4.5 million Indian children are engaged in child labor. This figure comes after the census report of 2011.

Among the many crises that the Covid-19 pandemic gave rise to, child labour is a pernicious one. The loss of sources of income and the closure of schools pushed children into a vicious cycle of exploitation and poverty.

Anil is 13. He migrated from Uttar Pradesh to Haryana around twelve years ago. Because they migrated from one state to another, his handicapped mother can neither avail of the subsidies provided by the local governments, nor can receive her widow and disabled-person pensions. Anil sells vegetables on cart and he is a sole earner for his family of six – four younger siblings and his mother. His father passed away recently. Anil wants to study but cannot due to family responsibilities.

15-year-old girl Deepika had to discontinue her studies due to financial crisis. After that she lost her mother, she was saddled with the responsibility of looking after her younger sisters and father.

Another 15-year-old from Panipat, Noorani, does sundry tailoring work and takes care of a family of six members. She dropped out of school after the death of her mother eight years back. Her father is an alcoholic who does not work.

The only silver lining in these children’s lives is that a few NGOs have come to their aid. NGO, Humana India helped Anil in enrolling his brothers and sisters in school but Anil has to manage his family’s financial crisis for now. This NGO came in touch with Deepika and her family. They convinced her father to enroll the girls back in school.

NGO also informed News18 that during Covid-19 lockdown, child labour has boomed as closure of schools gave parents an opportunity to take their kids to work along with them. “It is rampant in small contract companies to which large industries outsource their work. These companies are not registered and are hence not audited.”

A survey done by International Labor Organization (ILO) reveals that over 4.5 million Indian children are engaged in child labor. This figure comes after the census report of 2011. Ironically, India considers its youth as an asset and believes that we as a country have abundance of opportunities and human resources. A serious fact check might change this perspective.

Vishnu and Rohan are two kids who wander from place to place in a group of small families. They perform on the streets for local entertainment shows. Sudha Jha, who works for an NGO based in Panipat told News18 about such kids. They travel from place to place with their families and fall under the category of fixed child labour. Such kids are sharp and have good general knowledge about the locals  compared to children who work in particular areas. They travel and work in order to keep their family tradition alive.

Sudha mostly engages with rural sections and creates awareness about child labour and other social issues. She suggests that such children should be given proper education and skills training. But sadly, their parents want their kids to pass on the ‘Nat ka khel’ family tradition after them. So staying at one place for studies and skills training is not even an option for such kids. They work hard whole day by performing roadshows for a meagre income.

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Cadbury faces fresh accusations of child labour on cocoa farms in Ghana

A new TV documentary alleges that children as young as 10 are using machetes to harvest pods

The food giant that owns the Cadbury brand is embroiled in fresh allegations of employing child labour after an investigation obtained footage of children working with machetes on cocoa farms in its supply chain.

Children as young as 10 have allegedly been found working in Ghana to harvest cocoa pods to supply Mondelēz International, which owns Cadbury. Campaigners say the farmers are being paid less than £2 a day and can’t afford to hire adult workers.

The Channel 4 Dispatches investigation, broadcaston Monday, comes more than two decades after the chocolate industry pledged to eliminate child labour.

Ayn Riggs, founder of Slave Free Chocolate, which campaigns against child labour in cocoa farms , said: “It’s horrifying to see these children using these long machetes, which are sometimes half their height. Chocolate companies promised to clean this up over 20 years ago. They knew they were profiting from child labour and have shirked their promises.”

The Cadbury revelations come as this weekend millions of pounds will be spent on chocolate treats for Easter. More than £300m is spent on Easter eggs and novelties each year, including more than 80m boxed eggs. The chocolate market is worth £5.6bn in the UK, according to the market research firm Mintel. It includes about 330m Cadbury Creme eggs which are eaten every year.

Mondelēz, which made global profits last year of more than £3.3bn, has a sustainability programme, Cocoa Life. Its logo is marked on its products, including Cadbury Dairy Milk, and its website states: “No amount of child labour in the cocoa supply chain should be acceptable.”

Under the Cocoa Life programme, Mondelēz had, by the end of 2020, mapped about 167,800 cocoa farms that supply its businesses in Ghana , Côte d’Ivoire, Indonesia, the Dominican Republic and Brazil.

On one of the farms alleged to be supplying Mondelēz, two children with machetes were filmed by the documentary team weeding the plantations. Children were also filmed using sharp knives to open cocoa pods and swinging long sticks with blades tied to them to harvest the pods from the cocoa trees. None of the children were wearing protective clothing. The daughter of one farmer, claimed to be supplying Mondelēz, said she had sliced her foot open while using a long machete.

On one of the smallholdings, a niece of the farmer said she thought she was going to her uncle’s farm to help with childcare but claims she was being forced to work long hours on the farm and not allowed to go to school. When asked why she did not speak out, she said she was “afraid”.

Under Ghanaian law, it is illegal for children under 13 to work on cocoa farms. There is also a ban on anyone under 18 being involved in hazardous labour.

Ghana is the world’s second biggest cocoa producer after Côte d’Ivoire, and the crop, along with gold, is one of its most valuable exports. A cocoa farmer will typically receive 7p from a milk chocolate bar costing £1 in the UK, and 11p from a dark chocolate bar.

It means many live in extreme poverty while facing rising costs from the impacts of climate change, because of unpredictable weather patterns and changes in crop-threatening pests and diseases. Ninety percent of the world’s cocoa beans are harvested on small, family farms with less than two hectares of land.

In 2001, a cocoa industry agreement agreed to eliminate child labour. It was backed by the World Cocoa Foundation, a trade group whose members include the world’s biggest cocoa and chocolate companies, Nestlé, Mars Wrigley and Mondelēz.

But the protocol’s targets were postponed and adjusted in 2005 and 2008. A revised target in 2010, to reduce the worst forms of child labour in the cocoa sector in west Africa by 70% by 2020, has been missed. Campaigners say child labour is still endemic in the chocolate industry.

A study by the social research group NORC at the University of Chicago in 2020 found 1.56 million children were involved in the cocoa industry in Ghana and Cote d’Ivoire.

The report found prevalence rate of child labor in cocoa production among agricultural households in cocoa growing areas of Côte d’Ivoire and Ghana increased between 2008/09 and 2018/19. There was a 62 percent increase in cocoa production in the two countries during this period.

Joanna Ewart-James, executive director of Freedom United, an international organisation campaigning against child labour in the cocoa supply chain, said: “Child slavery and child labour have plagued the industry in Côte d’Ivoire and Ghana – which produce 60% of the world’s cocoa – for decades. Cocoa farmers are not earning an income that enables them to recruit the labour they need.”

On Friday, Freedom United will publish a scorecard rating global chocolate firms on their labour and environmental practices. The campaign group says Mondelēz has invested in community initiatives to combat child labour but, along with other leading companies, needs to pay farmers more money for its cocoa.

Slave Free Chocolate compiles a list of chocolate companies that use ethically grown chocolate.

Martin Short, president of the World Cocoa Foundation, said: “Dealing with child labour abuses as a standalone issue will never work until we deal with the root cause of child labour, which is farmer poverty.”

Cadbury, one of Britain’s most famous companies, was controversially taken over by the US food firm Kraft Foods in January 2010. The American food giant changed its name to Mondelēz International in October 2012.

Mondelēz considers a wide range of measures are required to combat child labour. The company has been involved in research which shows that increasing the price of cocoa will not on its own lift many farmers out of poverty, because they are farming on small amounts of land.

A Mondelēz International spokesperson said: “We’re deeply concerned by the incidents documented in the Dispatches programme. We explicitly prohibit child labour in our operations and have been working relentlessly to take a stand against this, making significant efforts through our Cocoa Life programme to improve the protection of children in the communities where we source cocoa, including in Ghana.

“The welfare of the children and families featured is our primary concern and we commit to investigating further so we can provide any support needed. As part of our Cocoa Life programme, we have child labour monitoring and remediation systems in place in Ghana, which means community members and NGO partners are trained to provide assistance to vulnerable children, and once identified, we can help to address any cases of child labour.” The company said it had requested additional information from the Dispatches team so it could investigate. Cadbury Exposed: Dispatches is on Channel 4 at 8pm on Monday

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Nearly 1 in 10 children are subjected to child labour worldwide, with some forced into hazardous work through trafficking.

Economic hardship exacts a toll on millions of families worldwide – and in some places, it comes at the price of a child’s safety.

Roughly  160 million children were subjected to child labour at the beginning of 2020, with 9 million additional children at risk due to the impact of COVID-19. This accounts for nearly 1 in 10 children worldwide. Almost half of them are in hazardous work that directly endangers their health and development.

Children may be driven into work for various reasons. Most often, child labour occurs when families face financial challenges or uncertainty – whether due to poverty, sudden illness of a caregiver, or job loss of a primary wage earner.

The consequences are staggering. Child labour can result in extreme bodily and mental harm, and even death. It can lead to slavery and sexual or economic exploitation. And in nearly every case, it cuts children off from schooling and health care, restricting their fundamental rights.

Migrant and refugee children – many of whom have been uprooted by conflict, disaster or poverty – also risk being forced into work and even trafficked, especially if they are migrating alone or taking irregular routes with their families.

Trafficked children are often subjected to violence, abuse and other human rights violations. For girls, the threat of sexual exploitation looms large, while boys may be exploited by armed forces or groups .

Whatever the cause, child labour compounds social inequality and discrimination. Unlike activities that help children develop, such as contributing to light housework or taking on a job during school holidays, child labour limits access to education and harms a child’s physical, mental and social growth. Especially for girls, the “triple burden” of school, work and household chores heightens their risk of falling behind, making them even more vulnerable to poverty and exclusion.

UNICEF works to prevent and respond to child labour, especially by strengthening the social service workforce . Social service workers play a key role in recognizing, preventing and managing risks that can lead to child labour. Our efforts develop and support the workforce to respond to potential situations of child labour through case management and social protection services, including early identification, registration and interim rehabilitation and referral services.

We also focus on strengthening parenting and community education initiatives to address harmful social norms that perpetuate child labour, while partnering with national and local governments to prevent violence, exploitation and abuse.

With the International Labour Organization (ILO), we help to collect data that make child labour visible to decision makers. These efforts complement our work to strengthen birth registration systems, ensuring that all children possess birth certificates that prove they are under the legal age to work.

Children removed from labour must also be safely returned to school or training. UNICEF supports increased access to quality education and provides comprehensive social services to keep children protected and with their families.

To address child trafficking, we work with United Nations partners and the European Union on initiatives that reach 13 countries across Africa, Asia, Eastern Europe and Latin America.

Learn more about child labour

COVID-19 and child labour

A time of crisis, a time to act

Child labour and responsible business conduct

Guidance to businesses, policy makers and other stakeholders to advance progress towards SDG Target 8.7 on eradicating child labour by 2025

UNICEF Executive Director Catherine Russell's remarks at the World Day Against Child Labour High-Level Side Event

Charting the course

Embedding children's rights in responsible business conduct

Related resources

Action against child labour | case studies, child labour: global estimates 2020, trends and the road forward, child labour: unicef data, inter-agency coordination group against trafficking in persons, unicef child protection advocacy brief: child labour, iom handbook for protection and assistance for migrants vulnerable to violence, exploitation and abuse, guidelines to strengthen the social service workforce for child protection.

A new compass

Without blinders.

In the mid-1990s, IKEA was rocked by accusations of child labour. At the time the company was the world’s largest furniture retailer, with almost 100 stores in 17 countries, and production in 70. As success for IKEA increased, so too did the media’s scrutiny. Revelations of child labour would lead to a new compass – cooperation with UNICEF and Save the Children, and codes of conduct on everything from child labour to environmental impact.

In spring 1994, a Swedish documentary revealed that child labour was common practice in the rug industry in Pakistan, where IKEA had production. Many of the children were debt slaves, sometimes along with their whole family. The scandal was a reality, and the recently recruited business area manager for rugs, Marianne Barner, acted swiftly. Contracts with Pakistani rug manufacturers were terminated and other supplier agreements had a clause added that prohibited child labour.

“The film was a real eye-opener,” Marianne remembers. “The UN Convention on the Rights of the Child had come along in 1989, but child labour was still unknown to a lot of people. I myself had spent a couple of months in India for some supply chain training, but child labour was never mentioned. Our buyers met suppliers at offices in the cities and rarely visited the actual production sites,” she says.

Not the first time

IKEA had been the subject of an earlier scandal, in 1992. Investigative reporters at German magazine Stern found high levels of formaldehyde in the white lacquer on the company’s best-selling BILLY bookcases. In the shadow of scandalous headlines about “deadly bookcases”, IKEA halted all production and sales until the problem was resolved. Added costs and a damaged reputation made the company think along new lines regarding its environmental work, and start working alongside organisations like Greenpeace and the World Wide Fund for Nature, WWF. The revelations of child labour had similar consequences. Marianne Barner and others at IKEA went to countries like Nepal, Bangladesh and India to talk to suppliers, as well as unions, politicians, activists and non-profit bodies, UN organisations and rug exporting associations.

“We also went on surprise raids on rug factories, saw child labour with our own eyes and were sometimes literally thrown out,” says Marianne. She says that even so, there was still a tremendous desire and readiness to develop among IKEA employees and suppliers in India. “We realised that IKEA had an opportunity to influence and help change things. At the time though, we didn’t really understand just how big an opportunity.”

Sceptical reception

When IKEA first contacted non-profit players like Save the Children and UN bodies like UNICEF and the International Labour Organization (ILO), it was met with scepticism. “We were often invited along as ‘the bad guy’ – a representative of major multinationals,” explains Marianne Barner. “It took a while before people realised we were serious about wanting to learn and cooperate. From the very beginning, our starting point was the Convention on the Rights of the Child’s principle to always do what’s in the best interest of children in everything we do. Our own corporate culture at IKEA was also important, such as not doing everything alone but collaborating with others. Also always thinking long-term, taking responsibility and acting for the many people. And for IKEA, children were, and still are, the most important people on Earth.”

On the advice of Save the Children, IKEA brought in an independent consultant to check that the suppliers were complying with the new agreements. Even so, as soon as 1995 a new revelation came along, when German TV showed pictures of children working at an Indian rug supplier that had signed the new agreement. “There was no doubt that they were rugs for IKEA,” says business area manager for textiles at the time, Göran Ydstrand. After seeing the pictures, there was a lightning response in India, and soon after that Göran was in a studio in Germany. There, on live TV, he explained in broken school German that IKEA had immediately halted production with the supplier in question. That was well received, but ultimately it would not be enough to fight fires whenever a crisis arose.

“To begin with, Ingvar was worried it would cost more. But it doesn’t. It’s always cheapest to do right from the start. Treating people well is a good investment whatever the country. You get better people, better motivation, productivity and quality.” – Sven-Olof Kulldorff, purchasing manager

Close down or develop?

Some members of the IKEA management group now started saying the company should simply end production of rugs in South Asia, which were only a small part of the range anyway. Instead, Marianne Barner started looking at how the company could make a long-term contribution to fight child labour. Meanwhile, the German police announced that the film about child labour in India was fake. It turned out that the renowned German journalist had made several fake reports about different subjects and companies. He lost his good reputation, but for IKEA the damage had already been done. And for the people most closely involved, like Göran Ydstrand and Marianne Barner, it didn’t really matter that this particular film was fake. It was clear that child labour and debt slavery were a huge problem in manufacturing in South Asia.

While awareness increased of the often dire, sometimes dangerous working conditions that could occur with suppliers in countries where IKEA had them, a new purchasing manager started, Sven-Olof Kulldorff. For the first eight months in his new post, he visited different places around the world. His impressions from factory visits and chats with suppliers led to a new strategy for purchasing, and to a policy document called Credo. This was a first step towards the more far-reaching codes of conduct that would come later. “The hard thing isn’t writing policies, but making sure they’re complied with,” says Sven-Olof Kulldorff. “Especially with such a low level of awareness. The aim was to show that the results were better for everyone if things were done properly.”

Sven-Olof and his team focused on getting the management on board with the new ideas around codes of conduct for suppliers. The key areas were simplicity, clarity, measurement and consequences. “To begin with, Ingvar was worried it would cost more. But it doesn’t. It’s always cheapest to do right from the start. Treating people well is a good investment whatever the country. You get better people, better motivation, productivity and quality.”

“What I personally am most proud of is the code of conduct to prevent child labour, and that we took a stand on the primary principle of what’s best for children, clearly and early on.” – Marianne Barner

Code of conduct launched

Following extensive work, studies of international declarations, and cooperation with UN bodies and non-profit organisations, in 2000 IKEA presented its first code of conduct to combat child labour, as well as its IWAY code (The IKEA Way on Purchasing Home Furnishing Products). These documents covered everything from child labour to working conditions, minimum wage and environmental issues.

“There were now regular controls right down to the subcontractor level, but the measures were about far more than just controls,” says Marianne Barner. “We no longer simply shut suppliers out, as that was a major blow to poor families. When we discovered child labour, we instead took a break in our cooperation until the supplier could show evidence of new procedures, as well as guarantees that the children in question had been compensated and were being helped into education. We also wanted to contribute to a change in attitudes, both among suppliers and in society as a whole.”

The Teflon Shield

The changes at IKEA took place in discreet silence, and were first highlighted internationally in 2001 in an article in Newsweek magazine. It described IKEA as a successful “prototypical Teflon multinational”. Unlike other companies, wrote Newsweek , IKEA had managed to avoid or deal with attacks from young activists in the environmental and anti-consumption movements. The article said that IKEA seemed to have built a defensive “Teflon shield” – not through campaigns, but with proactive measures against child labour and eco-scandals, for example. IKEA CEO at the time, Anders Dahlvig, was interviewed and said: “We don’t do things just to get rid of a problem … It’s rooted in our value system … Call it Teflon if you like, but now we have something I think we can stand up for.”

In the mid-2000s, Harvard Business School, USA published a case study of IKEA and the way it dealt with child labour, entitled: “IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor”. Still today, the study is one of the schools’ most popular among students and faculty. Professor Robert Strand, Executive Director of the Center for Responsible Business at the Berkeley Haas School of Business, often uses the Harvard case study in his courses. “It’s timeless,” he says. “The example from IKEA shows that business is fundamentally far more about cooperation than hyper-competition, which we often think – at least in American companies. IKEA built up collaborations and partnerships with Save the Children and UNICEF, and with its suppliers, which ultimately worked in everyone’s favour.”

Marianne Barner says that the approach developed by IKEA in the 1990s is now the norm. “Collaborations between companies and the non-profit world are now completely natural, but they certainly weren’t back then,” she says. “What I personally am most proud of is the code of conduct to prevent child labour, and that we took a stand on the primary principle of what’s best for children, clearly and early on. And the fact that the work we initiated still inspires today.”

Work in progress

After ten years’ exchange of knowledge and experience, as well as different projects with UNICEF, Save the Children and others, IKEA started what came to be known as the IKEA Social Initiative, later incorporated in IKEA Foundation. The IWAY code of conduct has been constantly updated, and is still, today, being refined to encompass the entire value chain. It is no longer just about making checks in production, but about results-oriented implementation. Many areas have to be clarified, whether it’s procedures and regulations for everything from animal husbandry to diversity, gender equality and inclusivity, responsible use of land and water resources, or clarity around what IKEA really means by decent, meaningful work. Conditions for migrant workers is another area that needs deeper study. Moreover, IWAY needs to be in tune with new business models and working methods at partner companies, including the gig economy . When the world changes, IKEA changes with it.

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Child labour case study

Since the era of globalization, child labor remains a widespread phenomenon throughout the world.

For large number of children work is an ordeal, on source of suffering and exploitation, and a fundamental abuse of human rights.

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The consequences of child labor often result in education deprivation, social disadvantage, poor health, physical and psychological development. The causes of child labor are complex and wide ranging, but the future for child labor does show some good prospects.

The 3 articles selected for this review highlights the problems ND solutions of child labor In a developed country UK and a developing country India, and the 3rd article further explores and builds on the other 2 articles In terms of causes of child labor. In 1st article ‘child poverty and child outcomes’, Bradshaw traces how child poverty has changed over the last 20 years in UK and how child poverty compares with that in other countries.

The 2nd article ‘Child labor, the most visible type of child abuse and neglect In India’, Caesar-Leo also highlights the growing problem of child labor In India and seeks to clarify the complex reasons behind the robber. The 3rd article does globalization increase child labor’, Guerrilla (2002) further explores and builds on the first two articles in terms of causes of child labor. All articles make systematic approach to illustrate each argument by utilizing clear and bold subtitles.

Both articles addresses the magnitude of child poverty on the basis of government resource, such as the Government of India Census and the Family Resources Survey from Department of Social Security, therefore suggests the accuracy and reliability of the sources.

However, Caesar-Leo criticizes the statistics collected by the government by emphasizing the difficulty to obtain an accurate estimate of working children, because number of girls is often underestimated because statistical survey do not take Into account the full time housework performed by many girls.

Hence compared to Bradshaw he presents a more critical view to the empirical evidence made available. It is also interesting to note the language is much move involving and emotional in the article on India by Caesar-Leo than the article on I-J. This is particularly evident under the subtitles ’causes and consequence of child labor’ In the article by Caesar Leo, he presents a vivid picture of how the children In India are being exploited by utilizing a direct quote from a 12 year old boy working In a glass bracelet factory in India saying “l do my work at night as in the daytime there is checking.

I earn RSI 32 for a today, while the elders get Errs for the same”, he also makes extensive use striking examples of the consequences of child labor such as ‘resort to begging or other illegal means of making money to survive’ and ‘female and ale children who are sexually exploited face severe physical and mental trauma’ to gain much of my own sympathy and sorrow towards the children In India. On the toner nana, Barabbas us s ten possible outcomes AT canny poverty sun as physical, emotional and behavioral without going into much detail like Caesar-Leo.

Personally, I feel the children in India deserve a lot more attention than those in UK just from the powerful image drawn by Caesar-Leo. All 3 articles I have chosen for this review address the causes of child labor in general. A number of perspectives characterize the literature around this topic, perhaps the most accepted view amongst the 3 articles is that economic condition and government policies are of main causes of child labor.

This is evident in Bradshaw article, where he argues Jobs became more insecure, part time, and episodic in the two periods of rapid rising unemployment in the early sass and early sass, and a large number of young people left school and sought to enter the tight labor market in the early sass. However, Bradshaw did not indicate where his source came from nor did he provide references to further research in this area. Caesar-Leo also agrees cause of child labor is a result of economic problem, particularly an inequitable economic system which ensures that the benefits of economic growth are not shared by all.

But his argument moves beyond the mere economic condition and attempts to address the cause of child labor on the individual level as well as on the macroeconomic level, he argues labor is forced by various factors such as poverty, broken home and he backs up his arguments with resources such as Ministry of Labor in India to increase the credibility of his arguments. Moreover, Caesar-Leo builds on the cause of continuing child labor in India, he argues child labor is perpetuated because it is cheap and profitable and it serves the interests of a small but powerful group.

I personally felt very empathetic towards the children in India compared to the children in I-J because of the powerful image and details presented by Caesar-Leo. Interestingly, Much of the evidence from the articles coincide with my own opinion towards child labor, India s a developing country with high power distance, hence it is expected the poorer children will be forced to work for a living and be exploited by those of rich and powerful. On the other hand, I-J is a developed country with excellent legal system, child labor should not be such a big problem except for those living in really poor conditions.

The 3rd article by Guerrilla builds on both the previous 2 articles in terms of causes of child labor, and explores the theory behind the causes of child labor. He agrees economic condition in general is one of the causes for child labor likewise to he other 2 articles, but he moves beyond the general cause and further expands on the theories behind it in a logical manner. He argues each point with assumptions and then incorporates the relevant economic theories to come to a conclusion.

For example, he assumes that most children normally do not choose to work, and most decisions are taken for them by their parents, so as long as the parents care about their own as well as their children’s consumption, the decision whether to send a child to work depends on three things. Guerrilla then applies the economic theories o the assumptions given, this case the cost of education, the expected return to education, and the extent to which parents are able to finance coeducational Investments.

Anally, nee outlines 3 possible outcomes such as the cost of increasing the child’s future earning ability is higher than the maximum that parents are willing to pay for it, then the parents might send the child to work full time.

Thus, by making assumptions and applying economic theories to each point, I believe it is the most logical and consistent way in addressing the cause of child labor. In terms of future policies and reforms for child labor, Bradshaw presents a much more optimistic view for the children in I-J while Caesar-Leo remains sour and doubtful.

For example, Bradshaw suggests the prospects for child poverty in I-J is very good as there has been numerous new measurements such as the National Minimum Wage, real increases in child benefit and child tax credit, which works together to reduce the child poverty. His argument is backed up on the empirical data gathered by government such as the annual report ‘opportunity for al’, which shows child poverty is moving towards the right direction. On the other hand, Caesar-Oleo’s argues there are serious limitations to law and enforcement machinery in legislations leading to rather blurred future for the children living in poverty in India.

He points out the two major limitations to the existing legislation.

Firstly, it excludes agriculture, domestic service and family enterprise in informal sector. Secondly, the minimum age at which child completes high school education in India is 15 years, whereas the minimum age required by law for children to work is 4 years, the discrepancy gives children access to employment before they have completed the minimum number of years of schooling.

It is interesting to note Caesar-Leo shares the same perspective as Guerrilla in terms of data collected by government, as they both believe there are discrepancies to it. In conclusion, all 3 articles I have chosen for this review deals with the exiting problems with child labor in general. While there are obvious differences in articles, all of them still share the common perspective towards the cause of child labor.

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• Case Study on Child Labour
• Child Labour
• Stop Child Labour (Speech)
• Case Study Labour Relations: Grievances
• Case Study on Child Behavior
• Case Study on Child Soldiers
• Case Study on Child Marriage

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